Building Details

Year built 1947

Floors in Building 2

Roof type Composition

Listing Agency: eXp Realty, LLC o***@exprealty.net Show Phone

Listed By: Shawn Richardson · License #201210661 Show Phone

Added: May 22 Changed: Aug 25 Last Checked: Aug 26 at 1:06AM

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MLS# 686347205

Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This 5,291-square-foot commercial property is currently configured for restaurant and bar operations. The improvements include a functional commercial kitchen, established bar area, dining space, and on-site parking. Built in 1947, the building has forced-air heating, central air, and a composition roof, with NPC-C zoning.

The property occupies 0.45 acres at 28405 Salmon River Hwy in Grand Ronde, Oregon. Its highway frontage places the site near Spirit Mountain Casino and provides access toward the Oregon Coast, Salem, McMinnville, and the Willamette Valley. The existing layout supports continued hospitality operations, while the source information also identifies potential for a brewery, taproom, cafe, lounge, event venue, or redevelopment.

Key Highlights

• 5,291‑square‑foot restaurant and bar property on 0.45 acres
• Currently operating with commercial kitchen, bar, and dining space
• Frontage along Salmon River Hwy near Spirit Mountain Casino

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$73,143

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

5.42%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,462,860 $1.5M

Cap Rate 7%

$1,044,900 $1.0M

Cap Rate 9%

$812,700 $812.7K

Market Conditions

NOI Build-Up for 5,291 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$101.6K $19.20/SF

− Vacancy

−$4.1K −$0.77/SF

EGI

$97.5K $18.43/SF

− OpEx

−$24.4K −$4.61/SF

NOI

$73.1K $13.82/SF

Area

Polk County, OR

Vacancy

4.00%

Lease Rate

$19.20 /SF/Yr

Expense Ratio

25.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,462,860

Cap Rate 7%

$1,044,900

Cap Rate 9%

$812,700

Alternative Uses

Best Use

Specialty Retail

$1.04M

$914.3K – $1.22M (±1% cap)

NOI $73,143 @ 7.0% cap · market cap 5.42%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.40M

$1.23M – $1.64M (±1% cap)

NOI $98,336 @ 7.0% cap · market cap 7.28%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Electrical Service (Bike/Boat/Book/etc) Store Storage Facility Grocery & Convenience Store Parking Lot & Garage Food Market

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

31

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 97347, OR

2,187

Population

752

Households

2.9

Avg Household Size

43

Median Age

4%

College-Educated

74%

High-School Grad

47.3 sq mi

ZIP Area

46

Density / Sq Mi

$41,250

Median Household Income

$30,758

Median Earnings

$754

Median Rent

$249,500

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Commercial kitchen, dining area, bar, and on-site parking support continued hospitality use.

Where is this conventional restaurant located?

The property is located at 28405 SALMON RIVER Hwy Grand Ronde, OR.

What is the asking price?

The asking price for this property is $1,350,000.

What are key features of this property?

This property features: 5,291‑square‑foot restaurant and bar property on 0.45 acres; Currently operating with commercial kitchen, bar, and dining space; Frontage along Salmon River Hwy near Spirit Mountain Casino